Rollover theme?
Thursday, March 4, 2010 at 07:40AM We can literally begin tonight’s Journal in the same manner as yesterdays as early thoughts returned of trying for 2010 highs soon.... a steady grind high continued, yet once again the clock struck 2pm and we sold off to close nearly flat on the day. It’s one step forward, one step back for the last 2 days. This time the culprit was ‘ DC ’.
Market just got used ‘DC’ risk being off the table, this is not something we want to see rear it’s ugly head again and gain steam as today with ‘Volker’ noise. At least the selling is not happening in the last 30 minutes of the day, which would be a bad sign. This likely‘ take a breather’ action preludes a few potential catalysts and we shouldn’t look at it as the market encountering heavy resistance just yet, but just a normal course of wait and see for a catalyst at many technical level (including SPX1123 ). There is a lot of technical ’fib’ stuff between here and 1130 and than back up to 2010 highs. If positives emerge in the next few days, but the market continues this trend of losing steam and rolling over, it would signal a tired and overbought market and more caution would be necessary.
A few more signs still today, we’re moving in the right direction....
M&A, which we discussed as a potential catalyst last night got another boost (NOVL) and Eco’data was on the right track. This is all good but near term, we patiently wait to see how the debt offering is received (demand) in Greece (and resolution) + if China puts in more curbs ahead or after their congress starts + NFP#.
In the meantime, EPS plays continue to act well. PLT continued on today and we liked what MFB put up in their report today. Another play to shadowlist is FARO , which has consolidated it’s recent report in good fashion on the charts.
